Sachem Capital Corp. ( SACH ) Q3 2025 Earnings Call November 5, 2025 8:00 AM EST Company Participants John Villano - Founder, Chairman, President & CEO Jeffery Walraven - Executive VP & CFO Conference Call Participants Christopher Nolan - Ladenburg Thalmann & Co. Inc., Research Division Gaurav Mehta - Alliance Global Partners, Research Division Presentation Operator Greetings, and welcome to the Sachem Capital Corp. Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
Sachem Capital Corp. (SACH) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.01. This compares to a loss of $0.13 per share a year ago.
Sachem Capital's Q2 results were better than feared, with interest and preferred payments covered, though coverage ratios remain tight. I maintain a long position in Sachem's baby bonds, favoring the 2027 notes for their attractive yield to maturity near 17%. The company's asset coverage suggests baby bondholders are likely to be made whole, assuming at least 65% recovery on loan investments.
| Mortgage Real Estate Investment Trusts (REITs) Industry | Financials Sector | John L. Villano CEO | AMEX Exchange | 78590A109 CUSIP |
| US Country | 28 Employees | 15 Dec 2025 Last Dividend | - Last Split | 10 Feb 2017 IPO Date |
Sachem Capital Corp. is a distinguished real estate finance company operating predominantly within the United States. Founded in 2010 and headquartered in Branford, Connecticut, it specializes in offering bespoke financing solutions to real estate investors and developers. The core of its business revolves around the origination, underwriting, funding, servicing, and management of a portfolio consisting mainly of short-term loans. These loans are well-secured, being backed by first mortgage liens on real property. Embracing a strategic taxation model, Sachem Capital Corp. has elected to position itself as a real estate investment trust (REIT). This crucial decision ensures that the company is exempt from corporate income tax on the portion of its net income that gets distributed among its shareholders, thereby maximizing shareholder value and financial efficiency.
At the heart of Sachem Capital Corp.'s offering lies its comprehensive suite of services encompassing the origination, underwriting, and funding of short-term loans. These services are designed to cater specifically to real estate investors and developers, providing them with the necessary capital to fund acquisitions, renovations, rehabilitations, developments, and/or improvements of residential or commercial properties.
Beyond merely providing financial resources, Sachem Capital Corp. extends its expertise into the servicing and management of loan portfolios. This end-to-end management ensures that loans are not just funded but are also well-maintained and serviced throughout their lifecycle, offering peace of mind and streamlined operations for both the lender and borrowers.
Adopting the REIT structure offers a dual advantage to Sachem Capital Corp. First, it aligns the company with favorable tax considerations, exempting it from corporate income tax on profits distributed to shareholders. Second, it signifies Sachem's commitment to the real estate sector, providing investors with an opportunity to partake in the company's real estate ventures through share ownership. This strategic structuring not only benefits shareholders with potential tax advantages but also solidifies Sachem's position within the real estate financing industry.